Synopsis

McDonald's last week announced its Sustainable Land Management Commitment (SLMC), a long-term plan to ensure the corporation only serves food (and uses packaging) certified as sustainably sourced. The initial focus is on five high impact products: beef, poultry, coffee, palm oil and packaging.

GSBi Viewpoint

In the SLCM, McDonalds is moving up a gear in terms of efforts to address supply chain sustainability. This represents a positive direction of travel for the brand, and should help in communicating a more authentic environmental message. Now though, the company needs to act on its commitments, especially since in some areas it is somewhat late to the table - e.g McDonalds plans to join the Roundtable on Sustainable Palm Oil (RSPO) in 2011, but this is some seven years after its formation. Encouragingly though, the company is working towards supply chain optimisation through a collaborative, partnership-based approach. Positive brand association has clear reputational benefits and can accelerate progress through knowledge-sharing – e.g. McDonalds is working with WWF in analysing priorities and setting targets, engaging suppliers in dialogue (e.g. Flagship Farms) and addressing the challenge of reaching and influencing indirect suppliers (the farmers themselves). For any company with an extensive network of suppliers, such actions are fast becoming the only way to address wider sustainability impacts.